sale of personal vehicle used partially for business

[winterbike2]

I am pretty sure that TurboTax desktop does this incorrectly.  It appears to use the current year percent of use for the basis adjustment, not the lifetime percent of use.

Can we get this fixed?

[PatriciaV]

When reporting the sale of a vehicle used for business purposes, the actual business use percentage must be calculated and entered by the user. Otherwise, TurboTax uses the current percentage in the calculations. 

In general, lifetime business use percentage can be calculated by dividing the total business miles by the total mileage for the vehicle.

[AmeliesUncle]

You are correct that it uses the current year percentage, so if the business percentage varied, TurboTax does not handle the sale.

While you could manually calculate and manually report the sale in the "Sale of Business Property" section, that usually causes other errors.

In short, TurboTax is not set up to report the sale of an asset that varied in business percentage.   Even IF they were to ever implement that ability, it certainly won't happen in this year's tax software.  Personally, I highly doubt if they will ever implement that ability.

[winterbike2]

Pretty sad that turbotax does not do this correctly.  The low-wage gig worker who may not be skilled in the art of faking out the forms to get the correct answer and also is not making enough on this gig to pay for a tax professional is screwed.

BUT the way to do it is to set up your tiny spreadsheet with the miles each year and the depreciation per year so you can compute the depreciation (which you need to do anyway) and then add to the spreadsheet the actual miles driven and do the ratio calculation.  Then fake out the worksheet form so the ratio it has matches the ratio you have.  The worksheet miles do not actually go on the 4767, only the basis, the sales price and the depreciation.  Get TurboTax to spit those numbers out that match your mini spreadsheet and you are good to go.  

Way to NOT go TurboTax.

[AmeliesUncle]

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@winterbike2 wrote:

BUT the way to do it is to set up your tiny spreadsheet

Yep, that is the way I do it in my professional version.